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The Honorable Thomas Perez 

Secretary 

United States Depaiirnent of Labor 

Frances Perkins Building 

200 Constitution Avenue. NW 

Washington, D. C. 202 l 0 

Dear Secretary Perez, 

July 29, 2015 

We the undersigned Representatives from the state or Illinois are writing in response to 

the Department of Labor's (DOL) new proposal which expands the definition offichJciary under 

the Employee Retirement Income Security Act (ERISA). \Vhile the intent of the proposed rnle 

has been described as a way to help middle class Americans save for retirement this proposal 

may have the unintended consequence of discouraging financial advisors from providing advice, 

education, and financial products through an amorphous and complex regulatory process to the 

market that is most in need of this advice. Furthermore, we believe this is an area where 

congressional action may be needed to update existing law to clarify agency authority and to 

address the evolution and current needs of the retirement services marketplace. We want to work 

constructively with the Department and other interested parties to achieve these goals. 

In particular, \Ve believe the following principles should guide the development of any new 

requirements in this area: 

e Consumer choice - Currently there are an array of business models and distribution 

channels that exist in the retirement savings marketplace. Policymakers should take into 

account that individuals and small businesses in some cases are more comfortable with an 

advisor that they know and trust rather than a telephone representative or a website 

advising them on their retirement needs. In other cases, individuals might \Vant to rely on 

technology or a telephone representative rather than an advisor. Nevertheless, an investor 

saving for retirement should have an array of choices and products. 

• Business model and product distribution - ln addition to consumer choice, we should 

recognize that there is an array of product options that are developed by securities firms, 

insurance companies, and other organizations. \Ve should \Vork toward a solution that 

recognizes that a suite of products utilized for retirement can operate under any 

exemption provided under law that are clearly defined. Restricting a business model but 

providing exemptions for others could have negative consequences Lo the investor and 

create an unlcvcl playing field. 
• Access to advisors - We are concerned that restricting access to financial advisors is very 

problematic. Almost 40 million American households have saved nothing for retirement. 

We should strive to assist these households through access to advisors and provide clear 

rules that advisors and their companies can offer training to ensure they are in 

compliance. 

We should also avoid hurting small businesses by imposing new administrative costs; 

excessive, unnecessary risks; and a new set of complex and conflicting requirements on services 

that are already subject to extensive regulation and supervision under existing laws that 

adequately protect investors and consumers. The Proposal, to the conlrary, will impose 

significant cost and risks that small businesses are ill-equipped to absorb. 

Two pmiicular areas where \NC \Vould like to work with the Department are: 1) the creation of 

a seller's exception that includes non-fiduciary selling activity as originally contemplated in 

DOL's proposal on the same subject in 2010 and has been long recognized by the courts; 2) 

making clear that the exclusive sale of proprietary products or services should not be viewed as a 

violation of any "best interests" standard. This would be consistent with the congressional 

directive of Section 913 of the Dodd-Frank Act. Finally, more coordination must be made with 

the Securities and Exchange Commission, vvhich has clearer jurisdiction over financial advisors, 

to ensure that individuals are not subject to duplicative, or perhaps conflicting, regulations 

coming from two or more agencies. 

We believe there is a great opportunity for Congress to work with DOL and others in 

establishing ne\v standards for the benefit of consumers in retirement services. We encourage the 

Department to take this path before moving ahead with the proposal. 

Sincerely, 

Adam Kinzinger 

Member of Congress 

Rodney Dav s 

Member of Congress